Onex Partners, a private equity platform, will acquire Integrated Specialty Coverages (ISC), a tech-enabled insurance platform that designs, underwrites, and distributes insurance solutions, from KKR.
During its partnership with KKR, ISC advanced from the 76th to the 91st percentile in Gallup assessment scores, achieved top-decile performance on the Ownership Works index with employee ownership sentiment up 23%, and reduced voluntary employee attrition by 50% since 2022.
As a result of ISC’s employee ownership program, all of the company’s nearly 400 employees will receive cash payouts upon closing of the transaction.
Chris Harrington, Partner at KKR, said, “It’s been an extraordinary journey partnering with ISC’s employees and leadership team, including Founder & CEO Matt Grossberg, who has been instrumental in bringing ownership culture to life and shepherding the Company’s next era of growth and innovation.
“Together, we’ve significantly expanded ISC’s market presence, enhanced its product offerings, and accelerated its mission to transform the underwriting and operation of complex insurance programs, creating a best-in-class network that supports the entire insurance ecosystem. This transaction represents a terrific result for ISC’s employee-owners and our investors in KKR’s Americas XII Fund, underscoring our commitment to serving as a catalyst for growth and value creation.”
Matt Grossberg, Founder and CEO of ISC, added, “The ownership mindset fundamentally transformed our organization at every level, cultivating an exceptional workforce of true stakeholders. This powerful shift inspired our team of owners to approach their responsibilities with heightened purpose and commitment, knowing they play a firsthand role in the company’s success. This alignment of individual and organizational interest has been vital to our achievements during our strategic partnership with KKR. We look forward to our next chapter in partnership with Onex.”
Adam Cobourn, a Managing Director at Onex Partners, said, “We are thrilled to be partnering with Matt Grossberg and all of ISC’s employee-owners in this next phase of the Company’s growth. ISC operates in a market sector that we understand very well, and we see tremendous opportunities to leverage our industry experience and network to help drive value creation. Alignment of interests between all stakeholders is a cornerstone of Onex Partners’ investing philosophy, and we look forward to continuing ISC’s highly successful employee ownership program.”
Pete Stavros, Co-Head of Americas Private Equity at KKR and Founder of the nonprofit Ownership Works, commented, “ISC exemplifies the power of ownership cultures in creating value for both employees and companies.
“The proof is in the data, which shows that over the last three years, ISC’s ownership culture and engagement scores have risen from the 60s and 70s respectively to the top decile in both, while the quit rate was more than halved from 18% to 6%. ISC will be in great hands with Onex, which shares our commitment to ownership and will continue an employee ownership program at the Company following the close of the transaction.”
KKR and ISC were advised by Morgan Stanley & Co. LLC as lead financial advisor and Kirkland & Ellis as legal advisor.
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